Question: 7 (1 point) Saved Use the following information to answer the next 3 questions Alpha Inc. which is a publicly traded company uses 70% equity

7 (1 point) Saved Use the following information to answer the next 3 questions Alpha Inc. which is a publicly traded company uses 70% equity and 30% debt for all of its financing needs. Shares of the common stock are currently selling at $80. The bonds of the firm are currently trading at $900 with a coupon rate of 7%, semi-annual payments and semi-annual compounding, 20 years to maturity and a face value of $1000. The company has a beta of 2 and a 35% marginal tax rate. The market risk premium is 6% and the risk-free rate is 5%. what is the cost of equity? Question 7 options: 14.6% 14.1% 17% 11.9% Question 8 (1 point) Saved what is the after-tax cost of debt? Question 8 options: 3.82% 5.21% 4.58% 5.31% Question 9 (1 point) Saved What is the WACC? Question 9 options: 11.09% 13.49% 8.65% 11.59% Question 10 (1 point)

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